Founder of the cryptonic project My Big Coin was found guilty of $6 million fraud

Founder of the cryptonic project My Big Coin was found guilty of $6 million fraud

A 51-year-old resident of the American city of East Hampton was found guilty this week of four episodes of electronic fraud and three episodes of money laundering.

Crater ' s sentence will be handed down on 27 October: he faces up to 20 years ' imprisonment and 10 years ' imprisonment on each count of money-laundering.

In 2013, the fraudster established a now closed company in Las Vegas and began to offer trusted citizens a non-existent virtual currency, My Big Coin. The digital "monets" were stored in the company's online accounts, which were supposed to be used to buy goods and services and exchange for other currencies.

From 2014 to 2017, Mr. Crater and his subordinates assured investors that My Big Coin's cryptation was provided with gold, oil, and "other assets" worth $300 million. He also claimed that he had launched a partnership project with MasterCard and offered the clients a cobriefing card for My Big Coin MasterCard, which she was supposed to be able to calculate by writing off a cryptative account.

In fact, there was no gold, no other assets, no partnership project with MasterCard, and no fake cryptation could be used for any purpose: the victims simply gave their money to the fraudsters. According to the prosecution, Crater received more than $6 million from trusted citizens and spent hundreds of thousands of dollars buying art, jewelry, and antiques — in particular, bought a rare rock through the New York auction house of Lord and Guy for $8,7008.

In January 2018, the United States Commodity Futures Trade Commission officially accused Crater and My Big Coin of stock exchange fraud and filed civil suits against the CEO of John Roach Company. A year later, Crater himself was arrested in Florida and charged with criminal charges.